SALT LAKE CITY, UT--(Marketwire - December 20, 2007) - FX Energy, Inc. (NASDAQ: FXEN) today
provided an operations update on its oil and gas operations for the second
half of 2007. The update included a preliminary fourth quarter production
estimate. The Company also provided a preview of its major upcoming
projects. The Company will hold a conference call on Thursday, December 20,
2007, at 4:00 p.m. Eastern. The call will be hosted by David Pierce,
President and CEO of FX Energy. Interested parties are invited to listen
to the call through a live webcast. To access the webcast, please go to
the home page of FX Energy's website, www.fxenergy.com. An archived
version of the conference call will be available at the same location
following the conclusion of the call.

Though the Company maintains a small presence in the U.S., most of the
Company's projects are in Poland. There the Company holds a 100% interest
in over 3.1 million acres, and partners with the Polish Oil and Gas Company
("POGC") in an additional 1.1 million acres.

Company Expects Another Quarterly Production Record

FX Energy's production for the fourth quarter of 2007 is forecast to be
approximately 510 million cubic feet equivalent ("Mmcfe"), an average of
5.5 Mmcfe per day. Production for the full year 2007 is forecast to be
approximately 2.3 Bcfe, more than double the amount for all of 2006 and
also a record for the Company. Some 80% of the Company's production during
2007 came from its operations in Poland. Two new wells in Poland have been
the source of the production increases. FX Energy holds 24.5% and 82%
working interest, respectively, in the Zaniemysl and Wilga wells, which
started producing in the fourth and third quarters, respectively, of 2006.

The Company has three additional discoveries, Sroda-4, Winna Gora and
Roszkow, all of which are located in its core area in western Poland. FX
Energy owns 49% of each of these three discoveries (double the 24.5%
interest it holds in the Zaniemysl well, which currently is the highest
rate producer in the core area). The Company is in the early stages of
negotiating gas marketing agreements and, along with its partner, POGC, has
begun the administrative and permitting process to build the production and
processing facilities for the new wells. Preliminary estimates have these
wells beginning production in 2009, although Roszkow could come on line as
early as late 2008.

Andy Pierce, FX Vice President of Operations, said, "The production and
revenues from our new producing wells, which have been the driving force
behind our much improved operating results, together with the production we
expect from the three wells waiting to be hooked up, give us great
confidence in our ongoing strategy in Poland. We expect these wells to
continue providing substantial revenues and cash flow in the future. We do
anticipate a decline during 2008 compared to 2007's flush production
rates," he continued, "so we expect 2008 will be more meaningful in terms
of drilling new wells and building production facilities in our core area.
In fact, we expect our Roszkow well, which has the highest production rate
potential of all the wells we have drilled to date, should have production
facilities completed this coming year and be contributing substantial
production beginning in 2009."

Fences Concession: Drilling Rotliegend Structures on 3-D

The Company continues to focus primary attention on the natural gas-bearing
Rotliegend sands in its core area, the Fences concession in western Poland.
This concession covers approximately 0.85 million acres. Building on two
previous gas discoveries, Zaniemysl-3 and Sroda-4, the Company made two
more new gas discoveries this year: Winna Gora in the first quarter of 2007
and Roszkow in the second quarter. These discoveries bring the Company's
success rate in its core area to 80% on structural trap targets defined by
new 2-D seismic.

In the second half of 2007 the Company completed initial processing and
interpretation on a 3-D seismic grid (the "Sroda 3-D") in the Fences core
area. Also in the second half of 2007 the Company completed field
acquisition on a second 3-D grid of similar size (the "Winna Gora 3-D"),
with processing and interpretation forecast to be completed mid-2008.

"We are delighted with the outcome of the Sroda area 3-D seismic; it
provides better resolution of our previously defined 2-D seismic structures
and also identifies additional potential targets along parallel trends,"
said Andy Pierce. Currently, the Company is working with its partner to
complete the necessary administrative and permitting requirements to
commence drilling. The drilling program in the Sroda 3-D area is
anticipated to begin with rigs on two different structural targets.
Additional details of the drilling program should be available by the early
part of the first quarter of 2008. The Company also expects to release its
2008 capital expenditure budget at that time.

Fences Concession: New Main Dolomite Reef Exploration

The second half of 2007 also brought progress with the Company's second
major effort in Poland: identifying and acquiring new exploration and
drilling opportunities. A drilling contractor has been selected to drill
the Grundy well in the Fences area. This well is scheduled to begin
drilling during the first quarter of 2008. The well is designed to test a
potential Ca2/reef target at a depth of just under 4,000 meters. Jerzy
Maciolek, FX Vice President International Exploration, remarked, "While the
Ca2 produces elsewhere in Poland, this is a new play for the Fences area
and therefore carries a much higher risk profile than our structural
sandstone/dune play where we have been successful on 4 of the last 5 wells
drilled on new 2-D seismic." Grundy is one of several possible reef
features defined by 2-D seismic that have been identified in the northern
portion of the Fences concession. The Grundy well is being drilled to
provide downhole data that will determine the potential for exploration in
this possible reef play.

Northwest Concession: New Seismic to Be Acquired

The Northwest concession is largely unexplored, with only three wells
drilled to target depths. It is located immediately north of the BMB and
MLG oil and gas fields discovered and owned by POGC. The Company first
acquired interests in the Northwest concession in the 4th quarter of 2006.

The Company has now completed processing and interpretation of existing
data in the Northwest Concession. Eight possible targets have been
identified, including both Rotliegend structural targets and Main Dolomite
reef targets. The Company plans a 2-D seismic program in the first quarter
of 2008 of approximately 220 km to confirm the characteristics and help
understand the potential of these targets. The seismic should be available
for initial evaluation in the second quarter of 2008.

Kutno Concession: Seeking Industry Partners

In April 2007, the Company announced it acquired 100% interest in the
248,000 acre Kutno concession in central Poland. It encompasses a deep
(6,000 meters or 19,200 feet) Rotliegend structure believed to be the
largest such undrilled structure onshore Europe. The structure has an
estimated aerial extent of between 100 and 150 square kilometers (25,000 to
37,000 acres). The amplitude of the structure is interpreted to be at least
150 meters (480 feet). Analysis of the prospect to date suggests that the
preserved porosity could range between 5% and 14%. Due to the depth and
cost, the Company considers it to be its highest risk prospect, and is
seeking industry participation.

Newly Acquired Concessions Add to Wilga Block

In July 2007, the Company was awarded 100% interest in four new concession
blocks totaling approximately 935,000 acres in east central Poland. These
blocks are adjacent to the Company's Block 255 concession, 82% Company
owned, where the Wilga-2 well is located. The five blocks, together
designated the Lublin concession, are relatively underexplored. Based upon
its preliminary exploration work, the Company believes these blocks have
potential for oil and gas deposits in several different horizons. The
Company currently is considering a 2-D seismic acquisition program before
seeking industry participation.

Commenting on the Company's expanded acreage holdings and increased
production, Mr. Maciolek noted, "While the core Fences area will continue
to have our primary focus because it has existing production and the most
potential for more new production in the next 18 months, we plan to
continue our two-pronged approach in Poland. Bringing shut-in wells on
line and drilling for new reserves in our core area will be complemented by
exploration on our new acreage where we hold 100% interest and where we
hope to find additional significant resources. The large per-well
production volumes and reserves achieved to date are consistent with the
expectations we have held for Poland's conventional gas potential and have
encouraged us to increase our exploration efforts in Poland."

About FX Energy

FX Energy is an independent oil and gas exploration and production Company.
Through 2006, most of the Company's production has been in the United
States, primarily in Montana. However, the Company's exploration activity
is focused on Poland and production commenced from two successful
exploration wells in late 2006. The Company has focused on Poland because
it has provided attractive conventional oil and gas exploration and
production opportunities. The Company holds a land position of 1.2 million
gross acres surrounding and adjacent to its Wilga discovery and 3.0 million
gross acres in western Poland's Permian Basin. The Permian Basin's
gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas
Basin offshore England, and represents a largely untapped potentially
significant gas resource. FX Energy is exploiting this untapped potential
to create substantial growth in oil and gas reserves and cash flow for its
stockholders. The Company trades on the NASDAQ Global Market under the
symbol FXEN.

For a discussion of the contingencies and uncertainties to which
information respecting future events is subject, see FX Energy's SEC
reports or visit FX Energy's website at www.fxenergy.com. This release
contains forward-looking statements. Forward-looking statements are not
guarantees of future drilling or other exploration or development results,
the actual presence or recoverability of estimated reserves, the portion of
unrisked gross potential resource that could be discovered and produced,
production amounts or revenues, construction costs or schedules or similar
matters. Forward-looking statements are subject to risks and uncertainties
outside FX Energy's control. Actual events or results may differ materially
from the forward-looking statements. For a discussion of additional
contingencies and uncertainties to which information respecting future
events is subject, see FX Energy's SEC reports.